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Barry Ritholtz: The Basic Simple Truths Of Investing

FYI: Look around you: This is the time of year when the pages of newspapers and magazines are filled with predictions and lists and all manner of money-losing nonsense. I have pushed back against much of this silliness in these pages over the years.
Regards,
Ted
http://www.ritholtz.com/blog/2014/12/the-basic-simple-truths-of-investing/print/

Comments

  • Hi Guys,

    The pantheon of exceptional financial article writers is not populated by an especially large number of souls. That limited number is greatly reduced if only currently active writers are considered.

    In my opinion, two members of this distinguished group are Morgan Housel and Barry Ritholtz. Of course there are others.

    I mention Ritholtz because of this most current contribution. It is a superb summary of investment rules-of-the-road that should benefit any investor who conscientiously and persistently practices them.

    I mention Housel because his thinking and writing style are similar to the Ritholtz model. His many overarching rules lists should profit any investor who consistently applies them.

    It is a challenge to write definitive articles on a regularly scheduled basis. These two guys mostly succeed with an occasional misstep that crosses into trivial territory. Given the difficulty of the task, it is easy to forgive when these rare exceptions occur. That’s particularly true given the present holiday season.

    Since it is so demanding to develop original subjects on a strict timetable basis, I suspect these writers often look to each other for subject ideas. Frequently, the topics seem to cluster together on a time scale.

    I believe that’s likely to have happened with Ritholtz’s present presentation. I referenced an article by Housel a few days ago that topic-wise is similar to the Ritholtz piece. Here is the internal MFO Link to that article:

    http://www.mutualfundobserver.com/discuss/discussion/17880/rules-and-forecasts

    I like both lists; they’re good stuff. They reinforce each other. For seasoned investors these references really do not provide anything we have not heard many times over and over again. Yet they are useful reminders of a successful time-tested investment process. These reminders help us to stay the course and to recover market-like rewards.

    I read Ritholtz and Housel whenever possible. What do you do? I’m somewhat surprised and disappointed by the poor readership the present Ritholtz reference has received from the MFO Board regulars to date. Perhaps, it’s the holiday season?

    Best Wishes for a Happy New Year.
  • Well, I’ve never read anything by Ritholtz that I found surprising
    or enlightening.
    Granted, this is a list of BASICS, but do I find any portion of this list actionable?
    Heck. And. No.
  • Hi AKAFlack,

    It is nice to hear from you again after such a long silence period. I hope you still access MFO on at least a semi-regular basis. I missed your comments; I trust many other MFO members missed your insights too.

    I’m a little surprised that you think so lowly of Barry Ritholtz’s financial advice. I believe we both agree that it is very basic, but the rudimentary character of the advice does not make it wrong and does not make it irrelevant.

    As a minimum, we all need a frequent reminder to stay on our chosen investment pathway. It’s all too easy to get caught up in market excitement generated by our exposure to the constant market hyperbola and news cycle. Voices like Ritholtz help to neutralize the persistent call-to-action, and the prediction exaggerations of phony investment wizards and/or one trick ponies.

    As a teacher, you’re very familiar with the need for educational repetition and constant practice. Writers like Ritholtz contribute in this dimension too.

    Whether you recognize it, or admit to it, I suspect you practice much of what Ritholtz recommends in his ten rules listing. Surely, you do not take exception to many of them. They’re fundamentally reliable advice regardless if you are a long term buy-and-hold investor or trade upon moving average crossings (I recall you exercise that strategy).

    How can you take exception to universal rules like “You can only succeed if you educate yourself, remain patient, and practice discipline” or “It is never too late to start. That said, sooner is much better than later.”? Yes, it is totally generic sayings, but it is likely that all MFOers act on these golden oldies.

    When writing, it is an impossibly high hurdle to be brilliant on each and every article. Ritholtz fails that acid test, but so does everyone else.

    Do you have similar reservations with regard to Morgan Housel’s investment perspectives and writings?

    I truly welcome your contribution. Apparently, your instructional standards are much more challenging than mine. That’s just fine by me.

    I wish you continued investment success, and hope your family is healthy.

    Best Wishes for the coming New Year and beyond.
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